What is an F&O Ban?
F&O Ban refers to a situation where trading in futures and options (F&O) of specific stocks is restricted. Stocks are placed under this ban when their market-wide position limit exceeds 95%. This measure prevents excessive speculation and aims to maintain market stability and integrity.
F&O Ban List
| Symbol | Previous MWPL % | Current MWPL % |
| Securities In Ban | ||
| MANAPPURAM | 95.18 | 93.79 |
| Possible Entrants | ||
| BSE | 80.49 | 85.8 |
| Hindustan Copper | 78.43 | 86.32 |
| Steel Authority of India | 80.16 | 85.13 |
| Possible Exits | ||
| — | — | — |
Introduction to F&O Ban List Companies
Manappuram Finance Ltd
Manappuram Finance Ltd is a leading non-banking financial company specializing in gold loans, microfinance and other financial services. Established in 1949, it caters to diverse customer needs through its extensive branch network.
F&O Ban Stocks List – FAQs
How Does An F&O Ban Work?
An F&O ban works by restricting the initiation of new futures and options positions for specific stocks. Traders can only square off existing positions. This limitation is enforced when the market-wide position limit exceeds 95%, aiming to curb excessive speculation and maintain market stability.
What are the criteria for a ban list in F&O?
The criteria for a ban list in F&O include stocks exceeding 95% of the market-wide position limit. This limit is calculated based on the total number of open interest positions. Once breached, new F&O positions cannot be initiated, but existing ones can be squared off.
When does trading resume once it is in the F&O ban list?
Trading in F&O for a stock resumes once its open interest falls below 80% of the market-wide position limit. This reduction indicates decreased speculative activity, allowing the stock to exit the ban list, and new futures and options positions can be initiated again.
Why are stocks banned in F&O?
Stocks are banned in F&O to prevent excessive speculation and market manipulation. When open interest exceeds 95% of the market-wide position limit, trading restrictions are imposed to maintain market integrity, ensuring stability and protecting investors from potential volatility and systemic risks.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
